HDFC Bank Uses CRM to Achieve its One

Bank Vision Boosting Profit and Custoer

!atisfaction
Published: A"ri# $%&$
Based in 'ndia( HDFC Bank is the #argest "rivate universa# )ank )* arket
ca"ita#i+ation( ,ith ore than $- i##ion custoers( an e.tensive
distri)ution net,ork of $-// )ranches s"read across &011 cities and ore
than --(%%% e"#o*ees2 3o aintain its #eadershi"( HDFC Bank used
CRMne.t to esta)#ish a sing#e "#atfor for e.ecution of its strateg* across
"roducts( de"artents and channe#s2 3he resu#t( over F4$%%56$%&&(
)ank7s net "rofit has gro,n fro U!D 0&5 i##ion to U!D &%00 i##ion at
a consistent rate of 0%8 9uarter 6on69uarter for the #ast 0 *ears2 During
this "eriod the )anks custoer )ase has gro,n )* &&08( ,hi#e the
#o*a#t* inde. has gro,n fro 05 to :$ as o""osed to industr* average of
-/2
Critica# !uccess Factors
HDFC Bank )e#ieves severa# ste"s together #ed to its "rogra success( inc#uding;
Top management vision and support
Implementation methodology
Respecting technology complexities
Ownership experience
Selecting
the right
Partners
1 Understanding <
counicating the vision of the
"rogra c#ear#*
2 Driving it as a
transforation rather than a
techno#og* "ro=ect
3 >nsuring ade9uate resource
a##ocation in ter of tie and
one*
4 De#ivering 9uick ,ins to
aintain the enthusias
5 Creating a 0 *ear roada"
to achieve the fu## "otentia# of
the vision
6 Creating an interna# CRM
e.ce##ence tea
7 >nsuring ade9uate u#ti6
,ave iterations for "rocess
unification
8 3aking 9uick decision during
de"artenta# conf#icts
9 Understanding that user
ado"tion is driven )* va#ue <
not techno#og*
10 Creating re#ia)#e integrations )ecause the*
ust tested da*6on6da*
11 >nsuring right strategies to ,ork ,ith ?OB
s*ste that are not o"en
12 Understanding sca#a)i#it* re9uireents is
ke* to decision aking
13 Understanding the i"act of re"orts and
iso#ating the ,ork #oad
14 3raining "roduction teas to o,n such a
high i"act CRM
15 >nsuring user training are "art of the HR
induction
"rogra
16 >nsu
ring
ade9uate
user
feed)ack
and
i"rove
ent
c*c#es
17 U
sing
strong "roduction change
anageent "ractices to
de#iver a#,a*s on
avai#a)i#it*
18 Understanding that such
transforation need "ractice
s"ecia#ists
19 !e#ecting a "artner ,ho can
add va#ue to the vision
20 ?istening to the "artner
es"ecia##* ,hen the advise is
counter intuitive
The Opportunity
3o retain co"etitive advantage( HDFC Bank rea#i+ed that in toda*@s
environent on#* un"ara##e# custoer e."erience cou#d "rovide a sustained
edge uch needed to aintain its gro,th rate in s"ite of increasing )a#ance
sheet si+e2 Un#ike other )anks( HDFC Bank did not ,ant to )u* gro,th at the
e."ense of its "rofita)i#it*2
3he )ank 9uick#* rea#i+ed that the ans,er ,as a t,o "rong strateg*
1 Raising the )ar for its interna# "rocesses Aa#though the )ank
,ere a#read* out"erforing the industr*B to "reserve "rofita)i#it*2
2 >nsuring consistenc* of inforation and actions across channe#s
to create an unatched custoer e."erience 6 gaining trust and
#o*a#t* to sustain the gro,th tra=ector*2
The Challenge
Des"ite the c#arit* in strateg*( e.ecution ,as an o)vious cha##enge2 !uch a
radica# strateg* ,as first of its kind and faced treendous risk due to inherent
co"#e.it* and techno#ogica# cha##enges( considering;
1 3he transforation had to ha""en across a geogra"hica##*
distri)uted tea( ,ithout ha"ering )usiness and at a "ace that ke"t
it re#evant2
2 !trea#ining de#iveries( kee"ing in ind the readiness and the
ground rea#ities2
3 ?everaging the data ,arehouse to )ui#d inte##igence on
custoers and de"#o*ing this inforation at various touch "oints to
he#" a.ii+e custoer #ife c*c#e va#ue2
4 !ca#a)i#it* of the s*ste given the #arge data vo#ues( --(%%%C
user )ase( ,orkf#o, co"#e.ities( integration( s*nchroni+ation and
increenta# u"dates2
High '"act i"roveent areas
Customer 3!
!
view
Sales process re"engineering
Customer experience
management
1 C
reatin
g one
vie,
of
custo
er
re#ati
onshi
"s(
intera
ctions
( and
"rodu
ctDser
vice
offering ,ith unified
,orkf#o, for a## sa#es <
service interactions2
2 Custoer intiac*;
Ehat do the* )u*F Ehat
do the* needF Ho, do
the* )ehaveF
3 Manage end6to6end
sa#es "rocess across
de"artents for a##
"roducts on a sing#e
"#atfor2
4 >nsure unification
i"roves 3A3 )acked )*
esca#ations at different
stages of the "rocess( irres"ective
of action ha""ening in CRM or ?OB
s*stes2
5 >na)#e service and action
guarantee across channe#s2
6 >
nforc
e
custo
er
court
esies( e"o,er
re#ationshi" anagers
,ith re9uisite
inforation( define
contact strategies )ased
on custoer segent
)ands2
#$$ective cross" Use
CRM
to
enha
nce cross se##( u"6
se## ca"a)i#ities
selling
capability across a##
custoer touch "oints2
%pproach
As one of the to" '3 s"enders( HDFC Bank has dee" re#ationshi"s ,ith a## ke*
techno#og* "artners2 A,are of ground rea#ities( the )ank focused on three ke*
"araeter to e.ecute a vision that had no "ara##e#
1 An u#tra6sca#a)#e "roduct ,ith an architecture ca"a)#e of
anaging over --(%%% users serving over $- i##ion custoers2
2 'ntegration ca"a)i#ities that are re#ia)#e and ca"a)#e of
anaging co"#e. < diverse scenarios ,hi#e retaining tracea)i#it*2
3 An i"#eentation "artner 6 a fir )e#iever in "ractice
#eadershi" ,ith e.tensive )anking doain kno,#edge and ca"a)i#it* to
e.ecute the vision2
CRMne.t@s !o#utions
Customer 3!
!
view
Integrated sales plat$orm
Customer experience
management
#$$ective cross"selling capability
1 C
reatin
g a
unifie
d
custo
er
vie,
)*
co##ati
ng
and
ass
aging
data
fro
vario
us
sourc
es
inc#ud
ing
the
data
,are
house
2
2 C
ontro
##ing
custo
er
infor
atio
n
)ase
d on
the ro#e of users2
3 >na)#ing access to
sing#e vie, across
various channe#s #ike
)ranch( "hone )anking(
etc2
4 Mu#ti6,ave "rocess
,orkouts to ensure
unification and
conso#idation of a##
unstructured "rocesses
Arun on e.ce#B and sei
autoated "rocesses2
5 Phasing out :
a""#ications #ike #ead
tracking s*ste(
custoer contact
anageent( etc2
6 'ntegrating ,ith G
core and origin s*stes
to "rovide end6to6end
status visi)i#it*2
7 Process 3A3
guaranteed )* a#erts and
u#ti6stage esca#ations
across de"artents and
channe#s2
8 Using o)i#e < t,o
,a* !M! ca"a)i#ities to
create #eads( u"date
status( re9uest for
custoer offers( etc2
9 >na)#ing i"roved
re#ationshi" anageent )*
creating virtua# "ortfo#ios and
accounta)i#it*2
10 >nsuring inforation
avai#a)i#it* at a## custoer touch
"oints to )oost the 9ua#it* of
interactions2
11 >na)#ing s*ste driven contact
strategies )ased on custoer )ands
to ensure a#igned actions2
12 Focus on roada" to esta)#ish
CRMne.t as a sing#e destination for
a##
needs
2
13 3
he
"#atfo
r
o"era
tes
acros
s a##
chan
ne#s(
"roviding g#o)a# visi)i#it*
and status of offers2
14 Various s*stes
integrated to "rovide
event )ased triggering
such as #arge de"osits(
channe# usage( etc2
15 Marketing tea
continuous#* generates
cross6se## offers and ne.t
)est "roducts to )e so#d2
Results
!ince the so#ution ,ent #ive in $%%1( HDFC Bank has tru#* )eing a)#e to rea#i+e
its vision and aintained the sae gro,th rate in s"ite of over $%%8 increase
in )a#ance sheet si+e2 3oda*( CRMne.t is seen as a star investent and a
ission critica# a""#ication that the )ank de"ends on( here is ,h*
High '"act 3ransforation
Sales process re"engineering
Customer experience
management
#$$ective cross"selling capability
1 C
usto
er
)ase
as on
Dec7$
%&$
has
,itne
ssed
a
,ho"
"ing
=u"
of
&&0
82
2 A
ssets
)usin
ess
gre,
)*
&%%
8
over
$%%5
#eve#s
2
3her
e has
)een
an
incre
ase
in
the
#eads
)eing
enter
ed
"er
ont
h in
Mar6$%%5 to in Hov
$%&& )* &::82
3 Drastic reduction in
3A3 for a=or retai#
#ia)i#it* and retai# asset
"roducts2
4 0$8 increase in
?ead Conversion fro
F4 $%%16&% to F4 $%&%6
&&2
5 Iua#it* of
docuentation has
i"roved fro :%8
F3R AFirst 3ie RightB
to 1G8 in Hove)er
$%&&2
6 3he )ank7s #o*a#t*
inde. rose fro 05 in
$%%G to :$ in $%&%
A)encharked at -/ for
the industr*B2Phasing
out : a""#ications #ike
#ead tracking s*ste(
custoer contact
anageent( etc2
7 Hu)er of
custoer co"#aints
"er &%k custoers "er
onth fro $%%G6%5 to
!e"te)er7&& reduced
)* 5:8
8 Average reso#ution
3A3 of co"#aints is
#ess than 0 da*s ,hich
is one of the )est in the
industr*2
9 !ervice Iua#it*
Rating i"roved fro
:-8 in $%%G6%5 to
1G8 in $%&&2
10 Average 3ota# cross
se## done in a onth
increased significant#*2
11 Hu)er of "ersona#i+ed offers
surfa
ced
on
onth#* )asis increased
significant#* fro Mar
$%%&6 Hov $%&&